Digital Assets Options Trading Guide (Part 2): Options vs. Futures/Perpetual Swaps
Many traders often struggle to understand the difference between digital assets options and futures/perpetual swaps when they first start exploring options. Let's use the following case study to illustrate:
Currently, Bitcoin's market price is $20,000. An investor wants to invest $20,000 in this market. The digital assets market mainly offers three types of products: spot, futures/perpetual swaps, and options.
Key Parameters
l Bitcoin's market price is $20,000, and the spot index is 20,000
l Bitcoin call option has a strike price of $21,000, contract multiplier of 0.1, expiration date one month later, priced in USDT, and the current option price is $50
l A user currently has $20,000 on hand
l Trading fees are not considered
l Futures/perpetual swaps use a linear contract with a face value of 0.0001 BTC
At this point, the investor has three investment options, with specific operations as shown in the table below:
1) Buy Spot
Use $20,000 to purchase 1 Bitcoin on the spot market
Returns = Market Price - Purchase Price
R = S – 20,000
2) Invest in Futures/Perpetual Swaps
Invest $20,000 in the contract market, open a long position using 8x leverage, purchasing 80,000 Bitcoin contracts with a face value of 0.0001 BTC each, with a margin rate of 12.5%;
Returns = (Latest Price - Purchase Price) * Number of Contracts * Contract Face Value
R = (S – 20,000) * 80,000 * 0.0001
3) Buy Options
Spend the entire $20,000 on options, acquiring 20,000/50=400 option contracts with a strike price of $21,000, expiring in one month
Returns = Number of Option Contracts (Latest Price - Strike Price) Contract Multiplier - Option Premium
R = 400 * (S – K) * 0.1 - 20,000
From the investment returns curve above, we can see that the investor's choice of investment plan depends on their assessment of market risk and returns, as well as where the market price will be in the future. Specifically:
(1) Buying Bitcoin spot carries the lowest risk, but its returns are also the lowest compared to futures/perpetual swaps and options;
(2) The advantage of futures/perpetual swaps is that when "Purchase Price < Latest Market Price < Option Strike Price," their returns are higher than options, while options incur losses on the premium paid;
(3) The advantage of options is that if you don't add margin, futures/perpetual swaps carry the risk of liquidation, which can result in total losses for investors; with options, however, the loss is still limited to just the premium paid, and if the price rebounds above $21,000 in the future, profitability is still possible. Furthermore, options themselves come with extreme leverage—if Bitcoin price keeps rising, option returns will far exceed contract returns, giving options the characteristics of "high leverage + no liquidation risk."
Through the above case study, we hope everyone now has a basic understanding of the differences between options and contracts in market performance. Now let's analyze the fundamental differences between the two from a deeper perspective.
Attentive readers may notice that the returns curve for options differs significantly from the returns curves of digital assets and derivative contracts. The returns curves of digital assets and derivative contracts (linear contracts[1]) are linearly symmetric, while the returns curve for options exhibits clear asymmetry.
The asymmetry of rights and obligations is the root cause of the differences between options and contracts: Options grant the holder the right to do something, but the option holder is not obligated to exercise that right. However, the option seller has only obligations—once the buyer chooses to exercise, the seller must fulfill the contract. In the contract market, performance is both a right and an obligation shared by both the buyer and seller, so both parties must fulfill the contract.
*Definition
Digital assets futures contract: The agreement to buy or sell a certain digital asset at an agreed price at a specified future time;
Digital assets option: The right for the holder to buy or sell a certain digital asset at a specific price at a specified future time;
*Nature and Differences
A mutual "commitment" between two parties— both parties have rights and obligations to execute the contract
A "right"— the holder can choose to exercise the right or choose not to exercise it
*Buyer and Seller
Buyer: Rights and obligations to execute the contract
Seller: Rights and obligations to execute the contract
Buyer: Right to choose
Seller: Obligations only
*Case Study
Currently, Bitcoin's market price is $20,000. Investor A buys a "long" next-week futures contract. Regardless of whether Bitcoin's price is $19,000 or $21,000 a week later, Investor A has an obligation to purchase 1 Bitcoin from Investor B at $20,000.
Currently, Bitcoin's market price is $20,000. Investor A buys one next-week call option with a strike price of $21,000. One week later, if Bitcoin's price is $19,000, then A can choose not to buy Bitcoin; if Bitcoin's price is $22,000, then A can choose to buy Bitcoin at $21,000.
[1] In fact, for inverse contracts, after converting the settlement unit from BTC to USD, their returns curve is also linearly symmetric.
Disclaimer
This article may contain product-related content that does not apply to your region. This article is only intended to provide general information and does not accept responsibility for any factual errors or omissions. This article represents only the author's personal views and does not represent OKX 's views. This article is not intended to provide any advice, including but not limited to: (i) investment advice or investment recommendations; (ii) offers or solicitations to buy, sell, or hold digital assets; or (iii) financial, accounting, legal, or tax advice. Holdings in digital assets (including stablecoins) involve a high degree of risk and may fluctuate significantly, or even become worthless. You should carefully consider whether trading or holding digital assets is appropriate for you based on your financial situation. For questions regarding your specific circumstances, please consult your legal/tax/investment professional. The information contained in this article (including market data and statistics, if applicable) is provided for general reference purposes only. Although we have taken all reasonable precautions in preparing this data and these charts, we do not accept any responsibility for any factual errors or omissions expressed herein. © 2025 OKX. This article may be reproduced or distributed in full or in part, and excerpts of 100 words or less may be used, provided that such use is non-commercial in nature. Any reproduction or distribution of the full article must prominently state: "This article is copyrighted © 2025 OKX, used with permission." Permitted excerpts must cite the article title and include attribution, for example: "Article title, [author name (if applicable)], © 2025 OKX". Portions of this content may have been generated or assisted by artificial intelligence (AI) tools. Derivative works and other uses of this article are not permitted.
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